Many traders put the focus on a single time period to buy or sell on the forex. For example, the 5 minute chart, or uurgrafiek the intraday chart.
Is this the most profitable method of trading currencies? Usually not.
The key to more profitable transactions on the forex is to make one or two longer-term charts to get you assist in making decisions in the time period you will eventually act.
For example, from the 15 minutes chart trade, then you should first analyze the uurgrafiek an overall picture of the longer term trend. To increase your chances of winning is always better to act in the direction of the longer trend, thus the direction in which the uurgrafiek indicates.
Question and answer
You get a buy signal on the 15 minute chart for the EUR / USD but you notice that the trend of the EUR / USD on the uurgrafiek strongly decreasing, would you buy? The correct answer is NO! Always follow the global trend.
How Does The Use Of Multiple Time Periods Forex?
The first period is one in which there is acting, the second and possibly third period are recommended to the longer trend to view and check for important support and resistance levels.
Below are some ideas:
1 min => 5 min => 30 min
5 min => 15 min => 1 hour
15 min => 1 hour => 4 hours
1 hour => 4 => day
4 => day
day => week
The general approach is to start with the longer-term period (s) to the global trend and to identify key support and resistance levels to locate. Then proceed only in the direction of the global trend. Over time this will render better than to focus on 1 time period.
Example of the Pound / Dollar
Below are 2 charts, uurgrafiek which indicates the global trend and the 15 minutes chart where the buying and selling decisions.
The trend on the uurgrafiek is decreasing from 19 November and is here defined by a MA crossover system.
The trend in the 15 minutes chart is determined by the same MA crossover system. Since the trend is descending on the uurgrafiek MA crossover will ONLY sell signals are taken. We avoid the buy signals in such a way that there are only acted upon in the direction of the overall trend DOWN.
related posts
- Xprofuter
- Ang Autoch Hl Trend
- Auto Fibo Alert 4Shared
- Metatrader Indicator Trend Multitf Free Download
- Indicator Combination Mt4
- Wavetrend Indicator Mt4
- Buy Sell Indicators Moving Average Forex
- Kwan Indicator Fx
- Woodies Triplecci
- Free Download Sidus V 2 Forex Robot
